Refund Requests of your Customers and Resellers

Your Sub-Resellers and Customers can request a Refund from within their Control Panel from the billing section. For instance, if one of your customers has a current available balance of USD 100, he can choose to request a refund of upto USD 100 from it. This will appropriately reduce his available balance and send you a notification to process that Refund.

When any of your Customer/Sub-Reseller requests for a Refund, the system automatically creates and Balances a Debit Note to signify the same. This Debit Note is calculated based on the available Receipts / Credit Notes with that Customer. This Debit Note is sent to you via email and allows you to determine the amount of Refund you need to give to your Customer. Let us understand how this Debit Note is calculated.

Lets say a Sub-Reseller of yours has the following Receipts (your Selling Currency is USD and Accounting Currency is INR.)

As you can see from the above list, the current balance of this Sub-Reseller is USD 225. This is spread across Receipts 2,3 and 4. Now let us suppose this Reseller requests for a refund of USD 200. The system will process this request as follows:

Fetch all Receipts of the Sub-Reseller required to refund USD 200 (in this case Receipts 2,3 and 4).

Use the Pending Balance of these Receipts to refund USD 200 (in this case USD 50 from Receipt 2, USD 75 from Receipt 3, and USD 75 from Receipt ID 4).

Calculate the Accounting Currency Amount for the Debit Note by checking the utilisation of each Receipt (INR 2450 from Receipt 2, INR 3600 from Receipt 3, and INR 3750 from Receipt 4 => INR 9800).

Generate a Debit Note of the amount of refund - USD 200 (INR 9800).

Balance the Debit Note against the Receipts to give the following final status of the transactions -

In the above example, we have taken a set of Receipts. The process would be the same if the Sub-Reseller had a combination of Credit Notes or Receipts. In the end both Receipts and Credit Notes are exactly similar.

The above steps are taken by the system. Your billing department now needs to process the refund and send it back to the Sub-Reseller. Your billing department must take the following aspects into account:

The way the system creates the Debit Note ensures that you never lose money in a refund transaction. The Accounting currency amount (INR 9800 in the above case) is calculated exactly based on the Accounting currency amount that was received at the time of the Receipt. Therefore your billing department must refund the exact Accounting Amount to the Sub-Reseller.

You may choose to further deduct charges for processing this refund before sending the same.